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Junaid Nasir
Abstract
This paper seeks to investigate the process of knowledge transfer. Management in High-Tech
I.T. Organisations is addressing the issue of knowledge sharing due to their growing awareness
of the importance of knowledge to organisational success. To manage and measure knowledge-
based resources is one of the most important challenges for the modern organizations.
It is widely claimed that knowledge has succeeded capital as the most important production
factor. More and more knowledge is built into products and making the most of the
organization’s intellectual assets is a major, if not the most important, key to competitiveness.
Therefore, Knowledge Management has evolved during the past few years as the next big
management school and more and more companies are starting Knowledge Management
programs.
Background
With the excessive downsizing and striping organizations of their core assets during the 1980’s
and 1990’s, “Knowledge often walked out the door during downsizing” (Davenport, Prusak).
As organizations began to realize these lost assets, they set out to focus on managing their
current and future Knowledge Assets. Increasingly, organizations are setting out to explicitly
manage the knowledge assets, and seeking to leverage the know-how, experience and judgment
resident within, and in many cases outside of the organization. Renewed interest in the area of
knowledge management has emerged in the last ten years in the form of an increased focus on
the dynamics of knowledge creation and sharing in Organisations. This has been most apparent
in the rise in prominence of research and consulting practices revolving around Knowledge
Management (KM) and Intellectual Capital Management (ICM). “According to a study of 500
European marketing directors from financial services, insurance, banking, and telecom
companies, 66 percent claim that inaccurate or incomplete data has negatively affected their
company's profitability.” (By Lisa Picarille, 7th July, 2003 Edition - SAS Institute Inc.)
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Impact of Globalization and Knowledge Management within High Tech Manufacturing Environment
Introduction
For centuries Craftsmen have been passing down their trade over periods of many years down
to their apprentices, this being the only method of passing their years of experience down to
others. Philosophers in their own right for centuries have been searching for the key to
knowledge creation and generation. It is only however in the past two decades that Knowledge
has become such an important topic for human behavioral research and business. Withstanding
Environmental and Globalization pressures comes change. The new economy companies are
unique.
Knowledge Management
The Knowledge Management (KM) area has become so diverse over the past ten years as
researchers have begun to investigate not only the mechanics of knowledge creation and
transfer but also of social and cultural issues that are of importance in understanding this topic.
KM is the process of leveraging and utilizing the vast, untapped potential of both implied and
documented knowledge to achieve optimal performance, both are equally important for
improving performance. Knowledge Management enables businesses to exchange and optimize
the knowledge and experience. "Knowledge Management caters for the critical issues of
organisational adoption, survival and competence in face of increasingly discontinuous
environmental change. Essentially, it embodies organizational processes that seek synergistic
combination of data and information processing capacity of information technologies, and the
creative and innovative capacity of human beings" (Malhotra 1997).
Increased realization of knowledge as the core competence (Prahlad & Hamel 1990), coupled
with recent advances in information technology such as intranets and the World Wide Web, has
increased organizational interest in the topic of knowledge management. Examples of known
knowledge management initiatives include Andersen's Knowledge Xchange, Booz Allen &
Hamilton's Knowledge On-Line, CAP Gemini's Knowledge Galaxy, Ernst & Young's Center
for Business Knowledge and Monsanto's Knowledge Management Architecture. (Dr. Yogesh
Malhotra - August 17, 1997, Philosophy of Information Systems Mini-track)
Junaid Nasir
Impact of Globalization and Knowledge Management within High Tech Manufacturing Environment
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Prahald and Gary (1990) were at the forefront of this resource-based school in their writings on
the core competence of the corporation. They described the core competencies as being the
collective learning in the organization, and made the important observation that unlike physical
Junaid Nasir
Impact of Globalization and Knowledge Management within High Tech Manufacturing Environment
assets, competencies do not deteriorate as they are applied and shared but are enhanced and they
grow. (Prahald, C.K. And Hamel, Gary (1990), The Core Competence of the Corporation,
Harvard Business Review, May - June)
“The firm’s resources and capabilities are divided into four categories namely Financial,
Physical, Human and, Organisational. The human resources include all the experience,
knowledge, judgment, risk-taking wisdom of individuals associated with a firm. Barney
proposes that a firm’s potential for sustained competitive advantage will then depend on the
value, rareness and inimitability of these resources and, most importantly, the extent to which
the firm is well organized to exploit them.” (Jay Barney (1995), Looking Inside for Competitive
Advantage, Academy of Management Executive, Vol.9 No.4.)
First, the standardization of Web servers and browsers allowed businesses to publish
information online. Then, standardization around e-commerce enabled simple Web transactions
– another significant step forward. More recently, integrating online applications with
customers' internal systems has created a new range of e-business possibilities. In this fast-
moving, highly competitive marketplace, companies must respond quickly to unpredictable
events such as changes in demand or sudden unavailability of supplies.
The more complex a finished product, the more likely it is to contain materials from far-away
suppliers. A supplier and a retailer may not even know of each other's existence, as each deal
mainly with intermediates.
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Impact of Globalization and Knowledge Management within High Tech Manufacturing Environment
“Japanese view knowledge as being “Tacit”. Something not easily visible and
expressible… Tacit knowledge is highly personal and hard to formalize,
making it difficult to communicate or share with others.
The KM challenge lies in the efficient use of existing knowledge via a conversation or
transformation of knowledge object to an explicit and shareable state. The solutions proposed to
achieve this objective can be summed up as “revised socio-technical systems” which
incorporates both information technologies and social/cultural changes. The western approach
concerns itself with “the idea of capturing knowledge gained by individuals, embedding it in the
organization’s information systems and spreading it to others in the organization” The KM
imperative can be read as an attempt to convert knowledge into a tangible form controlled by
Organisations. In this respect it can be seen to reflect an overriding managerial instrumentalism.
“Knowledge can and should be evaluated by the decisions or actions to which it leads”. The
goal of commercial knowledge is not truth but effective performance: not “what is right” but
“what works” or even better “what works better” where better is defined in financial and
competitive contexts.” (Davenport T.H. & Prusak, L. (1998) Working Knowledge: How
Organisations Manage What They Know, Boston, Harvard Business School).
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Impact of Globalization and Knowledge Management within High Tech Manufacturing Environment
Improving knowledge flows between Toshiba collects comparative data on suppliers ranking 200
Stakeholder suppliers, employees, shareholders, and quantitative and qualitative factors. It has an active supplier’s
Relationships community etc. using this knowledge to network and association where knowledge is shared and
inform key strategies. suppliers are integrated into future strategies.
Embedding knowledge into business CIGNA made their best underwriting knowledge available as
Knowledge in
processes and management decision guidance screens in their computerized underwriting processes.
Processes
making. This helped them turn a loss into a profit.
Knowledge sharing fairs. Innovation Tetra Pak Converting Technologies has learning networks,
Knowledge in workshops. Expert and learning where people from across the organization, pool, update and
People networks. Communities of knowledge develop their expertise in key technologies such as laminating
practice. and printing.
Source: Business Intelligence
Through the research of KM practices in the U.S., Gartner Group, have found that Knowledge
Capital is embedded in the enterprise's intangible assets (Gartner Group-GG). GG suggests that
Knowledge Capital includes intangible assets like brand image (particularly for very influential
companies, such as Coca-Cola or Microsoft) as well as Intellectual Capital. Intellectual Capital
includes the knowledge of employees; data and information about processes, experts, products,
customers and competitors; and intellectual property such as patents or regulatory licenses.
They have worked out the ratio of intangible assets (the incremental value of market
capitalization over book value) to tangible assets for various companies, and based on that
suggested strategies for KM.
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Impact of Globalization and Knowledge Management within High Tech Manufacturing Environment
These issues are not meant to be mutually exclusive or comprehensive; however they highlight
some of the limitations inherent in the current techno-centric conceptualizations of knowledge
management.
Given the increasingly wicked nature of the organizational environment, there seems to be an
imperative need for consideration of the subjective human sense-making interpretations. Such
human sense-making processes can provide the multiple, diverse, and contradictory
interpretations based on information in computer databases. The role of such processes seems
relevant in ensuring that the organization is doing the right thing, in contrast to the optimization
based predictive models that focus on doing things right. In a survey conducted by Ernst and
Young International Ltd., of 431 companies world-wide, 54% or respondents indicated that
creating a knowledge culture was the biggest obstacle to setting up successful knowledge
management programs. (Webb, Dave, “Corporate Culture Blocks Use of Knowledge”,
Computing Canada, Willowdale, Sept 1 1998)
"The future is moving so quickly that you can't anticipate it...We have put a tremendous
emphasis on quick response instead of planning. We will continue to be surprised, but we won't
be surprised that we are surprised. We will anticipate the surprise." (Dr. Yogesh Malhotra -
March, 1999, Knowledge Management for Organizational White-Waters: An Ecological
Framework)
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Impact of Globalization and Knowledge Management within High Tech Manufacturing Environment
Lotus Quickplace
Lotus QuickPlace helps teams communicate and collaborate, allowing them to achieve their
goals quickly and efficiently. Along the way, a QuickPlace can accumulate a great deal of
valuable information and it provides limited document management functionality, although
these features are not its primary purpose. Fully Translated version of Lotus Quickplace 3.01 is
available in 12 EMEA languages.
Sooner or later most teams eventually go on to other projects—as they meet their objectives and
members are needed elsewhere. When this happens, the QuickPlace may no longer be a center
of high activity, but it may still contain important documents of use to future teams. This is
where Dom.Doc comes into play; you can enhance the ability to manage QuickPlace content by
using Domino.Doc, the solution to document management. Due to the highly customizable
nature of both Domino.Doc and QuickPlace, these two standalone products can be integrated,
using QuickPlace's toolkit and the Domino.Doc API.
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Impact of Globalization and Knowledge Management within High Tech Manufacturing Environment
Domino.Doc Architecture
Domino.Doc 3.5 client and Domino.Doc 3.1 server have now been certified to run on Notes and
Domino 6, client and server. Domino.Doc is a flexible, out-of-the-box document management
system that is easy to deploy and that can be tailored to meet your specific needs. It is designed
as an enterprise document management system built on top of the Domino platform.
Domino.Doc provides library services for documents, such as document profiling, version
control, check-in/check-out, collaboration, and security. These services allow Domino.Doc to
be put to a wide variety of uses, for example a repository for Web content management for an
Internet site.
The Domino.Doc storage paradigm is based on a hierarchical model with the library serving as
the main entry and navigation point. This is where administrators can define who has access to
the system and at what level. The security levels within Domino.Doc are Manager, Editor, Draft
Editor, Reader, and No Access. Users are prompted for a login and password to be
authenticated by the system.
A file cabinet consists of a binder database and one or more document databases. The binder
database stores information about the binders including all the binder metadata. It also contains
the links to the various document databases referenced by the binder. The document database
contains information about the documents including all the metadata, the attachments, and the
various views used to display the documents. Metadata within the database is stored in
subforms that can be customized to your needs using Domino Designer. There are various ways
for you to customize Domino.Doc. The Domino.Doc API is a Win32 application and can be
instantiated from LotusScript, C++, and Visual Basic.
Lotus Workflow
Lotus Workflow, formerly known as Domino Workflow, is a stand-alone application
development tool that works on top of Domino to provide our customers with the ability to
develop, manage, and monitor all their business processes and help them eliminate the
downfalls of paper-based work. A key component in the Lotus' e-Business and Knowledge
Discovery strategy, Lotus Workflow is in the business of improving organizational
effectiveness and internal business processes for companies. Fully translated Lotus
Workflow3.0 versions are available in 10 European languages.
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Impact of Globalization and Knowledge Management within High Tech Manufacturing Environment
Lotus Workflow extends the workflow capabilities of Domino to provide the most powerful
workflow management system available. Mission-critical workflow applications can now be
supported and maintained, rolled out across the enterprise, and quickly modified as processes
evolve. By providing point-and-click tools and reusable object libraries for routing rules, role
assignment, deadline handling, and task automation, even complex processes can be automated
with little or no programming.
Lotus Workflow 3.0.1 is now certified for Lotus Notes and Domino 6 and ready for Workflow
applications deployment. Lotus Workflow 3.0 includes alternate name support "out of the box."
Unlike many products that allow you to search a specific type of data, Extended Search allows
you to enter a single request from a web browser and search potentially thousands of data
repositories, the Internet, and for people with expert knowledge at the same time. These
repositories can be of varied content and structure and, like the experts with whom you need to
collaborate, they might be geographically dispersed throughout the world. Fully Translated
version of IBM Lotus Extended Search is available in 19 EMEA languages.
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Impact of Globalization and Knowledge Management within High Tech Manufacturing Environment
And now with Lotus Discovery Server 2.0.1 includes improvements in the "abilities," like
enhanced deployability, manageability, extensibility, usability, reliability and performance.
IBM Lotus Discovery Server application framework diagram is shown below.
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Impact of Globalization and Knowledge Management within High Tech Manufacturing Environment
It is important to note that IDC is focusing on discrete knowledge management initiatives and
does not include knowledge management that is a secondary component of other projects.
Figure – 2 Worldwide and U.S. Total Knowledge Management Services Spending, 1998 and 2004 ($M)
IDC assumes worldwide and U.S. revenue will grow as companies move from the planning and
review stage of their knowledge management programs toward implementation. Once
implementation begins, knowledge management programs will start with small pilot programs
and expand over time. The United States is leading the knowledge management market, with
the non-U.S. regions lagging by one to two years.
Once success stories are publicized, many companies will begin to plan and implement
knowledge management programs. IDC expects the U.S. market to be larger than the non-U.S.
market until 2004. In 2004, knowledge management initiatives in non-U.S. regions will have
gained popularity, and spending will surpass levels in the United States. In 1999, the United
States accounted for 62% of overall knowledge management spending, while it will account for
only 47% in 2004 (see Figure 1).
Figure - 3 Worldwide Knowledge Management Revenue by Region, 1998-2004
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Impact of Globalization and Knowledge Management within High Tech Manufacturing Environment
At present, IDC includes Japan in Asia/Pacific and Latin America in the ROW because of the
limited amount of knowledge management activity in the regions. Although knowledge
management is gaining momentum in Japan, its slow climb is due to the hierarchical business
culture of Japanese business. Latin America shows little knowledge management activity, but
IDC expects activity to increase with improvements in the infrastructure and economic
environment.
Junaid Nasir
Impact of Globalization and Knowledge Management within High Tech Manufacturing Environment
Macro-Drivers
eBusiness and the Internet
The primary driver for knowledge management is ebusiness. Companies are being inundated
with data while being forced to make quicker decisions in response to a rapidly changing
business climate and heightened customer expectations. Knowledge Management offers
companies a means to create value out of their data and allow employees to make better-
informed decisions to serve the customer.
Globalization
As companies expand their operations around the world, the need to effectively share resources
and leverage experience across boundaries becomes critical. By storing, filtering,
contextualizing, and distributing structured and unstructured data while offering the ability to
track experts within an organization, knowledge management is the glue that can keep a
company operating efficiently in a global economy.
Deregulation
Deregulation of utilities, particularly the telecom industry, is a critical driver, particularly in
Western and Eastern Europe, because it will promote the entrance of new providers into the
market and drive down prices. As prices fall for local phone calls, Internet usage will grow and
cause an increase in ebusiness. To effectively manage the higher volume of information and
create a customized buying experience online, companies will need to implement knowledge
management programs.
Micro-drivers
Revenue and Profit Growth
As companies become enamored with new technology, they often run the risk of overlooking its
practicality and instead focus on the bells and whistles. The result is wasted time and money
that could have been invested more wisely, thus positively affected the bottom line. With
knowledge management, companies appear to have learnt from their past mistakes and are
approaching the concept with an eye towards how a knowledge management solution can make
a business more profitable. This change is primarily due to corporate management taking an
active role in leading knowledge management efforts.
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Impact of Globalization and Knowledge Management within High Tech Manufacturing Environment
companies are not only covered when an employee leaves but they are also capable of getting a
new employee up to speed quickly in a new position, creating a positive work environment.
In order to address these challenges, it is critical that change management and process design be
primary components of a knowledge management initiative. Over time, management must
develop and continue to support a culture of sharing through ongoing training and educational
programs. By doing so, the shared culture will become sustainable, and leadership will be
pushed down to lower management levels.
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Impact of Globalization and Knowledge Management within High Tech Manufacturing Environment
result, vendors that have experience in providing these services will have an advantage in
generating new business. For employees to participate in a knowledge management program,
incentives need to be in place to motivate participation. The incentives can include ties to
compensation and / or other types of perks such as extra vacation days. Because the
establishment of a sharing culture is so critical to the success of a knowledge management
program, incentive program development should be a visible component of a vendor's product
mix.
Industries that have become involved in knowledge management and that will provide
opportunities to vendors include Business services, Communications, Discrete manufacturing,
Financial-services, Government departments.
Junaid Nasir
Impact of Globalization and Knowledge Management within High Tech Manufacturing Environment
Conclusions
Organisations are being forced to consider the options that will help them gain a competitive
advantage against their competition and grow profits as a result of e-business, globalization,
deregulation, and the merger and acquisition environment. As a result of the growing
competitive environment, management is looking at knowledge management as a means to
make their Organisations more productive by leveraging their employees' intellectual capital.
The ability to harness knowledge will not only help the company's bottom line but will also help
the company retain expertise in a tight job market. By not adopting a knowledge management
program, companies run the risk of being stuck in an information overloaded environment and
getting left behind by the competition that understands the importance of leveraging knowledge.
While knowledge management is gaining popularity, companies need help developing solutions
and will require the vendors' solutions and support.
As a result of this growing awareness, we are going to see rapid growth in the demand for
knowledge management services. As companies begin implementation of pilot programs,
employees will learn knowledge management's benefits, be trained on technology, and become
comfortable with information sharing.
Eventually, implementation will become smoother because there will be organizational buy-in
and the technology will match the process flow. The higher comfort level will allow
organizations to broaden the scopes of their programs to include more challenging areas such as
supply chain management, which, in result, will drive the demand for more services.
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Impact of Globalization and Knowledge Management within High Tech Manufacturing Environment
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Dave Webb (1998), “Corporate Culture Blocks Use of Knowledge”, Computing Canada,
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Impact of Globalization and Knowledge Management within High Tech Manufacturing Environment
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